Friday, May 8, 2009

Friday 05/08/09 - Focus on 3-min Chart

I missed the first 45 minutes, but then managed to put on a couple of good trade sequences between 9:30 AM and 11:00 AM resulting in a net gain of +10.25 points (half of that was from one trade). I stopped trading at 11:00 AM due to errands in downtown. I focused on the 3-minute chart today, which produces very nice setups but requires a slightly wider stop-loss (3 pts), which so far has produced decent results. I'll continue experimenting with it next week while I improve my execution. Here's how the stats broke down today over 7 trades:

% Break-Even:

28.57

% Win

57.14

% Loss

14.29

Avg Win

2.69

Avg Loss

-0.5

Largest Win (pts)

5.00

Largest Loss (pts)

-0.50

Total Win (pts)

10.75

Total Loss (pts)

-0.50

Net Gain/Loss (pts)

10.25

No losing days this week, and a weekly gain of +38.75 points.

Going into next week, we have open gaps below at 907.75 and 876.50. Still looking for ES to hit 940; but trading what I see (momentum). Looking at the 60-min chart, I'm noticing an exhaustion in this up move and 927 is proving to be resistance. I'd like to see a 60-min candle CLOSE above 927 for continued upside action. Have a good weekend all!

Matt, still playing with it in real-time. We'll see how next week goes, but it looks promising. What Everything in the market needs to be taken in context. I'm trying to build a framework that will allow me to view the market in the proper context based on the day's price action. I want to be able to handle range-bound chop and strong trends alike. I need to be flexible and fluid in my trading.

Fadi, no problem man. It was cool meeting up...still can't believe you trade from Starbucks! I'd be too distracted to put on any trades LOL

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Disclaimer

Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential.